CBI custody of company official extended

NEW DELHI, INDIA: A Delhi court Monday extended by two more days the police custody for Rajiv Aggarwal, director of Kusegaon Fruits and Vegetables Private Limited, for his alleged involvement in monetary transactions amounting to Rs.200 crore with Kalaignar TV. The CBI suspects the transaction is linked to the 2G spectrum scam.

Allowing the Central Bureau of Investigation (CBI) plea for his custody for two more days, Special Judge O.P. Saini said: "Considering the facts of the case andneed of confrontation of the accused with the other suspects and documents, Aggarwal is remanded to further (CBI) custody till April 6."

Aggarwal was presented before the court after the expiry of his three-day CBI custody.

The CBI sought the remand of Aggarwal on the ground that directors of Cineyug Films Pvt Ltd, through which Rs.200 crore were allegedly transferred to Kalaignar TV Pvt Ltd, would join the probe soon and that the agency needs him to confront him. Cineyug Films has been named in the charge sheet filed by the probe agency in the scam.

"It is the case of the CBI that the accused is required to be confronted with directors of Cineyug Films Pvt Ltd as they had not attended the investigation earlier, and as such, Aggrawal and those directors could not be confronted with each other earlier," said the court.

"Aggarwal is required to be interrogated further in connection with his association with Green House Promoters Pvt Ltd, Chennai," said the CBI, adding that he has not even disclosed the facts under which heavy cash was sent to this company.

Sadiq Batcha, a close associate of former telecommmunications minister A. Raja and director of Green House Promoters, was found dead in his Chennai home last month.

"Kusegaon Fruits and Vegetables Pvt Ltd and Cineyug Films Pvt Ltd entered into an agreement Jan 27, 2010. It is also in the statement that Cineyug Films Pvt Ltd received a sum of Rs.200 crore from Kusegaon during the period Dec 23, 2008, to Aug 7, 2009," it said.

During the spectrum scam probe, the CBI arrested Asif Balwa the brother of Swan Telecom promoter Shahid Balwa, who is also one of the director of Kusegaon Fruits and Vegetables Private Limited, along with Aggarwal March 29, in connection with the 2G spectrum scam.

Asif is in judicial custody.